The latest remarks from US Commerce Secretary Howard Lutnick have again underscored the growing friction between Washington and New Delhi over India’s Russian oil imports and pending trade negotiations.

Speaking to CNBC, Lutnick stated that the US will “sort out” a trade deal with India only once New Delhi halts its significant purchases of Russian crude and opens up further market access to American companies.

He reiterated his long-held assertion that India, which imported merely 1% of its oil from Russia prior to the Ukraine war, has now increased this share to around 40% by taking advantage of cheaper, sanctioned Russian barrels.

According to Lutnick, India is refining this oil and reselling it profitably to global markets, which President Donald Trump has publicly dismissed as “nonsense.”

Tensions have been amplified after Trump, in August, imposed an additional 25% tariff on Indian imports—over and above the already announced reciprocal 25% duty—explicitly as a penalty for buying Russian oil.

New Delhi, refusing to bow to external pressure, denounced the move as “unjustified and unreasonable” and reiterated its position that India will purchase energy supplies from wherever it gets the best commercial advantage. This stand highlights India’s longstanding policy of maintaining trade and energy sovereignty even amid geopolitical constraints

Despite the disputes, official messaging from both sides projects optimism. Trump recently posted on social media that negotiations on trade barriers are progressing and stressed that reaching a “successful conclusion” will be straightforward.

He also highlighted his intent to speak with Prime Minister Narendra Modi in the coming weeks, describing the Indian leader as a “very good friend.” Modi, in turn, responded with conciliatory language, emphasising that India and the US are “natural partners” and asserting his confidence that dialogue will “unlock the limitless potential” of the bilateral economic relationship.

At the same time, Lutnick’s rhetoric has oscillated between hardline pressure and eventual reconciliation. Just a week ago, he told Bloomberg that although India has been firm in resisting US calls to stop Russian crude imports, he believes that within “a month or two” New Delhi will return to the table, acknowledge Washington’s concerns, and seek to finalise a trade arrangement under Trump’s administration.

His comments suggest that Washington is banking on mounting tariffs and sustained diplomatic pressure to eventually alter India’s approach to energy sourcing, while dangling the prospect of a favourable trade pact as an incentive.

This stand-off illustrates the delicate balance India seeks to maintain—leveraging cheaper Russian oil to cushion its economy while simultaneously navigating its “strategic partnership” with the United States.

For Washington, particularly under Trump, the issue has evolved from being solely about economics to being strategically tied to its global sanctions regime against Moscow.

The next several months may prove decisive in shaping whether the competing pressures of energy security and trade access push India to recalibrate its position or whether it continues to defy US demands while strengthening its bargaining posture.

Based On NDTV Report